Enron Corporation Case Study

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Enron Corporation was an American commodities, energy, and services company that was based out of Houston, Texas. This corporation was founded in 1985, resulting from the merger between InterNorth and Houston Natural Gas, these were both moderately small businesses in the United States. Before Enron’s bankruptcy on December 2, 2001, it had nearly 20,000 employees and was one of the global leaders in the communications, electricity, natural gas, and pulp and paper market, with declared earnings of approximately $101 billion during 2000. Enron was termed “America’s Most Innovative Company” by Fortune for six years in a row.
It was discovered that Enron’s stated financial condition was prolonged by established, inventively, and methodically planned
Its bankruptcy came to an end during the November of 2003, pursuant to a plan of restructuring that was approved by the court, after one of the most complicated bankruptcy cases in the history of the United States. The new directors’ board renamed the business to Enron Creditors Recovery Corp., and stressed restructuring and liquidating specific assets and operations of the pre-bankruptcy Enron. Enron sold Prisma Energy International Inc., its last remaining business, to Ashmore Energy International Ltd., on September 7, 2006.
Key leadership personnel related to my analysis of Enron Corporation includes: Kenneth Lay (Founder, Chairman and CEO), Jeffrey Skilling (former President, COO, and CEO), Andrew Fastow (former CFO), Rebecca Mark-Jusbasche (former Vice Chairman, Chairman and CEO of Enron International), and Stephen F. Cooper (Interim CEO and CRO). Enron Corporation was my company of choice for this assignment because I am an accounting and finance double major. So, any companies involved in the cause of the enactment of the Sarbanes-Oxley Act of 2002, are very interesting to
Soon after that, Causey is appointed Chief Accounting Officer (CAO). LJM, the first of two partnerships created by Fastow, supposedly was created to “purchase” failing assets of Enron and to circumvent dicey investments. However, this partnership truly only assists Enron in concealing its debt and inflating its profits. Enron Corporation’s board accepts Fastow’s plan to run these partnerships that conduct agreements with Enron during his continuation as CFO of Enron. Former Chief Risk Officer (CRO), Rick Buy, and Causey are appointed to supervise these agreements to safeguard the assets of Enron

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